New Zealand Dollar declines as safe-haven demand lifts US Dollar
NZD/USD depreciates after three days of losses, trading around 0.5750 during the Asian hours on Monday. The currency pair holds onto its losses as the New Zealand Dollar (NZD) remains subdued, failing to find immediate support despite a positive turnaround in local economic data.
New Zealand’s BusinessNZ Performance of Services Index climbed to 50.6 in June, up from an upwardly revised 48.0 in May. This critical rebound marks the services sector's first return to expansionary territory since January.
Broader private sector momentum showed even stronger signs of recovery, with the BusinessNZ Performance of Composite Index jumping to 53.6 in June from May's revised reading of 49.9. This shift represents the first overall expansion for New Zealand's private sector since the start of the year. Furthermore, the sharp increase signals the country's strongest pace of economic growth since December 2025, even as currency markets look past the data.
The risk-sensitive NZD/USD pair loses ground as the US Dollar (USD) rises sharply amid heightened geopolitical tensions in the Middle East. According to Bloomberg, the US Central Command (CENTCOM) launched additional strikes on Sunday evening, aimed at weakening Iran's capability to target civilian vessels navigating the waterway.
Reuters reported that US forces have hit more than 300 Iranian targets over a three-night span, including 140 on Saturday alone, while Washington and Tehran issued conflicting declarations regarding whether the strait remains open to maritime traffic.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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